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Do Not Reproduce 7 October 1976

MEMORANDUM FOR: Chief, Contract Personnel Division
ATTENTION ~~ : Mr. Rod Brooks |
FROM : Joal E. Keys, Chief

Corporate Cover Branch
Central Cover Staff

: é ,
SUBJECT : Request for Letter of Agreement

0? 4. Please prepare a Letter of Agreement between the Agency and ob
(LABLUE, which,.through the President of the firm, Mr. (Emmett Mw. Steela)
has agreed to place on retainer a Contract Agent of Europe Diviston,

ov (SOPHOHE/1. John Jd. Murray, Jr. represented the Agency tn these
negotiations. Identities will be forwarded under separate cover.

. ? om
2. Effective 1 October 1976, BBLUE will place on retainer (TOPHONE/1

at an annual retainer of2$9,000, which will be paid to him in monthly
increments of $750 by(LBBLUE. The Company will overtly negotiate a
retainer contract with, QOPHONE, which will make eminently clear that
both are negotiating and con iuding the contract as independent
parties; that the Company, LUE, will have no obligation to withhold
Federal, or state income taxes, or Social Security taxes.

3. In consideration of the support rendered, the Agency wil}
pay(L. ‘LUE $10,000 annually. Pravision. is made in this amount to
offset any nominal expenses the firm incurs in its overt associations
or support oft HONE/1. It also serves, in part, to minimize the
chances that duditing personnel will identify a wash transfer between
.the notional facility and payments to CLOPHONE/1
e

9
- 4. The Agency will retmburse(1 BBLUE in quarterly increments
via_a contrived contractual arrangement betwee LUE and a notional

facility of the Agency. Cancelled checks will serve as adequate
accountings for monies paid{LABLUE.

Ot
°. Please include the usual paragraphs of appreciation, secrecy,
and prohibition of bona fide employment. .

6. All information relating to this agreement is classified
secret. Both the Agency and the Company agree that the most stringent
Safeguards will be taken to protect this information, including the

E~2 INPDET
CL BY 055987

WARNING NOTICE
SENSITIVE INTELLIGERSE SOURCES

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existence of the agreement. Any informatton in any form that must _

be given to a third party by either the Agency or the Corapany wil]

_be cone In strict conformance to the laws ‘safeguarding national. _
.. Security information, and only with full consultation between the
. Ageney and the Company, § ~~ - oo , rr

“

(JOEL EL KEYS) =o

SEQRET

